No. This does not mean cost of producing material will be higher...

No. This does not mean cost of producing material will be higher than the revenue generated. It just means that revenue generated from this initial strategic piece will not cross $250,000 which is the material threshold from audit and financial reporting purpose for 3DA. That means unless revenue crosses $250,000 it wont be considered material.

Below is high level brief of what is material concept from financial world perspective:

"The materiality concept refers to a situation where the financial information of a company is considered to be material from the point of view of the preparation of the financial statements if it has the potential to alter the view or opinion of a reasonable person. In short, all that financial information that is likely to influence a knowledgeable person’s judgment should be captured in the preparation of the financial statements of the company. The materiality concept in accounting is also known as materiality constraint."

Even though revenue may be lower than $250,00 from this initial deal. I think getting into the books of company like Boeing will lead for multi million dollars recurring revenue in future.

So, in summary, it is a great milestone to break into deal with Boeing.